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Lean Kanban India 2016 - Digital Transformation

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Challenge for Change, Call for Capability. Start understanding and developing your business capabilities instead of running after one-shot transformation.

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Lean Kanban India 2016 - Digital Transformation

  1. 1. Digital Transformation Challenge for Change – Call for Capability A Kanban Perspective Mike Leber Agile & Lean Coach Twitter: @michael_leber http://agileexperts.at
  2. 2. Mike Leber Consulting, Training, Coaching for The Learning Organization Adaptive Organizations - Leadership & Change • Executive Consultant • Agile and Systemic Coach • Accredited Kanban Trainer (AKT) • Entrepreneur • Speaker and Community Facilitator http://agileexperts.attwitter: @michael_leber Austria
  3. 3. Digital Leadership Journey
  4. 4. @AgileExperts | http://agileexperts.at Digitalization - What it means
  5. 5. @AgileExperts | http://agileexperts.at Digitalization – What it really means? Market Trends • Low transaction cost for creating new services, apps • Technologies, Platforms • Software basically part of every product • Active Products (IoT) • Data, data, data Pressure for Organizations • Need to decrease internal transaction cost • Think connected (Marketing, Product Management, Production, CRM, Maintenance etc.) • IT part of business • Sense & Respond
  6. 6. @AgileExperts | http://agileexperts.at Memories about Revolutions
  7. 7. @AgileExperts | http://agileexperts.at C-Level Calling Truth of reality (maybe painful) Ignorance of Illusion Tried Agile before? Change success rate? Hip new methods? Re-organization?
  8. 8. @AgileExperts | http://agileexperts.at Understanding the System W.E. Deming „...the system that people work in and the interaction with people may account for 90 or 95 percent of performance....“ System Capabilties - Sensing business opportunities - Understanding optionality - Making strategic & tactical decisions about portfolio - Balancing risk - Understanding commitment - Driving delivery (Flow) - Acting upon issues - Learning & Improving • What does our System need? • What do we observe? • Is it fit enough for Purpose?
  9. 9. @AgileExperts | http://agileexperts.at Niklas Modig, Pär Ählström: „This is Lean“
  10. 10. @AgileExperts | http://agileexperts.at Complex Network of ServicesDemand Observed Capability Demand Demand Observed Capability Observed Capability Graphic by David J. Anderson and Lean Kanban University
  11. 11. @AgileExperts | http://agileexperts.at Complex Network of ServicesDemand Observed Capability Demand Demand Observed Capability Observed Capability Graphic by David J. Anderson Kanban Agendas – Understanding Needs of those inside the System Survivability • Lead the business (strategy and positioning) • Confidence they can deliver on strategic goals • Legacy (long term survival) Service-Orientation • Up-managing – answer the hard questions with confidence • Down-managing – make difficult decisions with confidence Sustainability • Relief from abusive environment • Overburdened • Quality suffers • Low job satisfaction
  12. 12. @AgileExperts | http://agileexperts.at Understanding, Improving, Trust Understanding Capability Understanding Risk Understanding Improvement Opportunities • Current Process • Flow Efficiency • Lead time as distribution (outliers, risk, etc) • Blockers • Liquidity • Limiting WIP • Adjusting Policies • Service Classes Feedback Loops on all Levels
  13. 13. @AgileExperts | http://agileexperts.at Social Capital enabling Up-Stream Collaboration The Alchemy of Growth by Merhdad Baghai, Stephen Coley, and David White, 1999 Typical Challenges - Too much Focus on H1 § Focus on Shareholder Value and Quick ROI § Bonus Payments § Budgeting Process § Exeriments not welcome § Only current segments § No longer term impact Today‘s revenue growth + tomorrow‘s cash flow Options on future high-growth businesses
  14. 14. @AgileExperts | http://agileexperts.at Social Capital enabling Up-Stream Collaboration The Alchemy of Growth by Merhdad Baghai, Stephen Coley, and David White, 1999 Typical Challenges - Too much Focus on H1 § Focus on Shareholder Value and Quick ROI § Bonus Payments § Budgeting Process § Exeriments not welcome § Only current segments § No longer term impact Today‘s revenue growth + tomorrow‘s cash flow Options on future high-growth businesses David J. Anderson
  15. 15. @AgileExperts | http://agileexperts.at Existing Biz ModelsNew Biz Models Leadership Behaviors Values Structures Exploration Strategy Innovation Ideas Portfolio Exploitation Options Balance Commitment Evolving Organizational Capabilities § Flow efficiency and Slack Time over Capacity Utilization § Validated Learning over Deliverables Quantity § Understanding Stakeholders and Business Risk over Blaming § Risk Aware Decisions over HIPPO Enforcement § Organizational Liquidity over Scaling up a Business
  16. 16. @AgileExperts | http://agileexperts.at Summary Digital Transformation – Reframe the Question • It is not about (one-time) transformation • Understand the System • Understand Capabilties & Purpose first • Evolutionary Growth of fitness for adapting in fast changing economy Know Your Agendas • Decisions about Portfolio, Products, Deliverables that stick • Clarity, Trust • Experimentation, Learning No call for heroic acts of leadership

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